Mobilizing capital for sustainable development
- By Gilles Vermot Desroches
- 28 May 2025
- 4 min read
As the world prepares for COP30 in Belém, Brazil, this November, the message from concerned citizens, scientists, and advocates is clear: we must accelerate the sustainable energy transition, strengthen resilience, and mobilise capital at an unprecedented scale. The stakes could not be higher. Climate change is intensifying globally, and its worst consequences are disproportionately impacting rural communities, smallholder farmers, and other vulnerable populations — those who have contributed the least to the problem.
Finance will make or break this moment. Yet the current flow of capital is falling far short of what’s needed. According to The Independent High-Level Expert Group on Climate Finance, co-authored by economist Nicholas Stern, $6.3 trillion to $6.7 trillion per year is needed globally by 2030 to stay on track with climate and development goals. While this may seem steep, delaying action would cost far more in the long term.
To reach global climate goals, public and private climate finance must grow to at least $1.3 trillionannually by 2035, the number agreed upon at COP29 — more than ten times the outdated $100 billion pledge made in the Paris Agreement. And the capital must be smarter, targeting frontline communities and real, scalable solutions.
This is where impact investing plays a pivotal role.
Designed to deliver both financial returns and measurable social or environmental outcomes, impact investing channels capital into sectors like renewable energy, sustainable agriculture, and inclusive infrastructure, with the intention of fostering a lasting positive impact. This approach is centered around people and strongly emphasize resilience.
Funds are used to address systemic issues — like poverty, inequality, and climate vulnerability — while generating sustainable economic returns, aligning with the UN’s Sustainable Development Goals (SDGs).
- $102bnof global impact investing market value in 2024
- $38bnof impact assets in Asia
- 90%of investments meeting or exceeding expectations
The global impact investing market was valued at $102.4 billion in 2024, with projections to nearly triple by 2030. In Asia, over 68 investors now manage $38 billion in impact assets, with 90% of investments meeting or exceeding return expectations.
What sets impact investing apart is its intentionality and flexibility. Impact investing is defined by four key practices that establish baseline expectations for achieving measurable social or environmental benefits alongside financial returns. Firstly, intentionality is a core aspect, where investors deliberately aim to address social or environmental challenges. Secondly, the use of evidence and impact data is crucial in designing investments that effectively contribute to these benefits, ensuring decisions are informed and strategic. Thirdly, managing impact performance involves actively steering investments towards their intended outcomes, utilizing feedback loops and performance communication to guide the investment process. Lastly, contributing to the growth of the industry requires investors to adopt shared industry standards and share their insights, fostering a collaborative environment that enhances the overall impact of the sector.
In Schneider, as an impact investor, we frequently provide patient capital, technical support, and ecosystem-building capabilities, helping early-stage startups grow responsibly in regions with limited commercial finance. By delivering essential services like energy access, education, and climate adaptation, impact investing directly supports the goals of COP30.
A successful start, then, catalyzes the broader sustainable business community by attracting additional investors and fostering a collaborative environment among stakeholders.
Schneider Electric has been a pioneer in impact investing since 2009, aligning its purpose — empowering all to make the most of energy and resources — with targeted capital deployment across the Global South.
Rather than directly controlling investments, Schneider acts as a catalytic investor, collaborating with local partners and funds to de-risk early-stage ventures, strengthen local ecosystems, and scale high-potential innovations. Beyond capital, Schneider offers technical expertise, mentorship, and access to its global supply chain and network.
SEEAA: Scaling energy access in Asia
A flagship vehicle is the Schneider Electric Energy Access Asia (SEEAA) fund, launched in 2019 in partnership with Norfund, Amundi, and EDFI Management Company. With €20.9 million in committed capital, SEEAA backs startups in South and Southeast Asia that are simultaneously addressing energy poverty and climate change.
SEEAA goes beyond financing, working closely with entrepreneurs to build sustainable business models and attract follow-on investment. It’s strategic, hands-on support for energy access and environmental solutions where it matters most.
Impact in action: Agros and Okra Solar
Two portfolio companies showcase the transformative power of impact investing:
Agros Global
Operating in Indonesia, Cambodia, and Myanmar, Agros helps smallholder farmers adopt climate-smart agriculture—a sector responsible for nearly 30% of global emissions (source) and one of the most vulnerable to climate shocks. Agros offers bundled services including solar-powered irrigation, sustainable inputs, soil advisory, and financing.
Okra Solar
Okra Solar delivers off-grid electricity to Southeast Asia and Africa through a decentralized solar mesh grid. Each household has a plug-and-play energy hub connecting to neighboring homes, forming a reliable and scalable power network.
This model demonstrates that even the most remote communities can access clean energy through innovation and community-driven design.
Democratizing impact: SEEA and employee investment
In Europe, Schneider has taken impact investing a step further with a participatory model. The Schneider Electric Energy Access (SEEA) fund, certified under France’s ESS (solidarity-based enterprise) framework, enables employees to co-invest in high-impact global startups.
This model exemplifies Schneider’s belief that sustainability must be shared — not just in outcomes, but in ownership.
COP30 represents a critical turning point for climate finance. Governments, companies, and investors must step up — boldly and collaboratively — to direct capital where it can have the greatest impact.
Schneider Electric’s approach offers a compelling, inclusive blueprint: mobilize catalytic capital, empower local innovators, and drive inclusive solutions. Impact investing is not just a financial tool—it’s a lever for long-term, systems-level change.
By scaling this approach, we can accelerate the fair energy transition and transform today’s challenges into opportunities for sustainable growth. The energy future we want is within reach not just for large corporations but also for all sectors of the community, including women- and minority-led enterprises, indigenous communities, and rural innovators.
Wraparound models that combine technical assistance with financing are particularly helpful in helping businesses thrive while embedding climate-smart practices into core business models.
COP30 could be a defining moment for climate action and sustainable development if we choose to take it. It needs commitment and capital mobilizing private and government funding with impact investing at the very fulcrum of its endeavors.
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